bank account

generally yes, it is easier for record keeping but not totally necessary

ask your banker

If you have multiple IP loans with the same bank.
For this example you do not own a PPOR.

Would you ever setup more than one offset account?

Cheers,
Adrian

Kevreno … i set up an account for each single investment, though it may be several apartments within the investment. That allows me to keep precise accounting records for each investment, based purely on bank statements. It also allows me to enumerate who has paid and who hasnt paid based on the entry in the account.

For tax purposes it also provides a single set of entries that need to be chased down when looking for rents receipts and expenses.

For record keeping purposes i can go back over the statements and work out what was spent on what before i approach my accountant.

OMG. That would mess with my head. I do have loans separate but I have one account that the rent goes into and bills (including interest)  are paid from. That way it's easy to keep track of ins and outs. I put all transactions on a spreadsheet for each property.

Packages from lenders usually allow multiple loans under the one annual fee. So the added costs associated with taking out a new loan with a "cheaper" lender does not mean it will be better in the long run.

It's much the same as with Wayne Swan's broken record about "walking down the road to find a better deal" every time the banks don't pass on the full interest rate cut. Funny that he hasn't told people how to actually do it! Possibly comes down to the fact that there are costs involved when "walking down the road" and that in most cases it will cost more than the saving.

Cheers

Tom

Hi Renae

There are a few lenders out there that offer better than packaged rates without any application or ongoing fees.

It is horses for course.

Cheers

Yours in Finance

Wow thanks Jamie, Tom and Richard for the advice, I didnt think I'd get four replies so quickly.

I think I'll stick with Breakfree. I was concerned because I only have one small mortgage and it seemed like I wasnt getting 'value for money' with this package. Though I've just read on ANZ's website that you can have up to five residential home loans with Breakfree and avoid loan approval fees and loan admin charges.  I guess that makes the fee work a bit harder for me when I purchase IP#2.

Thanks again

Hey Richard any chance you could forward me a copy of the interview in your sig please?

cheers

I like the ANZ b/free package.

Generally speaking, there an easy lender to deal with when accessing equity because their policy in this area is quite transparent. Valuations can be ordered upfront and the loan product itself is pretty good.

Like you mentioned, when you increase your borrowings under the package you'll be entitled to a larger rate discount (which depending on the size of the borrowings can possibly be negotiated down further).

Cheers

Jamie

Hi delbs

Can you drop me an email directly or Pm me your email address and I would be happy to let you have a copy of my API interview.

Cheers

Yours in Finance

Hi delbs

Just emailed it to you from my gmail address as i am at home.

Cheers

Yours in Finance